OPTIMAL PRICING AND INVENTORY POLICY WITH ORDER CANCELATIONS UNDER THE CASH-ON-DELIVERY PAYMENT SCHE

• 作 者: ZHANG Jie NIU Baozhuang LI Jianbin
• 机 构: School of Business Administration,Guangdong University of Finance and Economics,Lingnan College,Sun
• 出 处: Journal of Systems Science & Complexity
• 发表日期: 2014年05期
• 关键词: Cash-on-delivery customer behavior dynamic programming joint price and invent

Considering a periodic review system where the online seller allows the customers to pay when the products are delivered to them(referred as cash-on-delivery payment scheme in this paper),the authors investigate the seller’s joint pricing and inventory control policy with a finite planning horizon.In particular,the authors incorporate the customers’ possible order cancellation behavior with the cash-on-delivery scheme.It can be proven that the base-stock list price policy is optimal under mild conditions.The authors also analyze the impact of the customers’ forward looking behavior on the optimal policy.

Considering a periodic review system where the online seller allows the customers to pay when the products are delivered to them (referred as cash-on-delivery payment scheme in this paper), the authors investigate the seller’s joint pricing and inventory control policy with a finite planning horizon.In particular, the authors incorporate the customers’ possible order cancellation behavior with the cash-on-delivery scheme. It can be proven that the base-stock list price policy is optimal under mild conditions. authors who analyze the impact of the customers’ forward looking behavior on the optimal policy.